Correlation Between Baosheng Media and Software Acquisition
Can any of the company-specific risk be diversified away by investing in both Baosheng Media and Software Acquisition at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Baosheng Media and Software Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baosheng Media Group and Software Acquisition Group, you can compare the effects of market volatilities on Baosheng Media and Software Acquisition and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Baosheng Media with a short position of Software Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and Software Acquisition.
Diversification Opportunities for Baosheng Media and Software Acquisition
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baosheng and Software is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and Software Acquisition Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Software Acquisition and Baosheng Media is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Baosheng Media Group are associated (or correlated) with Software Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Software Acquisition has no effect on the direction of Baosheng Media i.e., Baosheng Media and Software Acquisition go up and down completely randomly.
Pair Corralation between Baosheng Media and Software Acquisition
Given the investment horizon of 90 days Baosheng Media Group is expected to under-perform the Software Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, Baosheng Media Group is 6.51 times less risky than Software Acquisition. The stock trades about -0.1 of its potential returns per unit of risk. The Software Acquisition Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Software Acquisition Group on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Software Acquisition Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Baosheng Media Group vs. Software Acquisition Group
Performance |
| Timeline |
| Baosheng Media Group |
| Software Acquisition |
Baosheng Media and Software Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baosheng Media and Software Acquisition
The main advantage of trading using opposite Baosheng Media and Software Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, Software Acquisition can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Software Acquisition will offset losses from the drop in Software Acquisition's long position.| Baosheng Media vs. National CineMedia | Baosheng Media vs. Townsquare Media | Baosheng Media vs. Dolphin Entertainment | Baosheng Media vs. Travelzoo |
| Software Acquisition vs. National CineMedia | Software Acquisition vs. Baosheng Media Group | Software Acquisition vs. Townsquare Media | Software Acquisition vs. Dolphin Entertainment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |